Why is opportunity cost of chossing option $2$ not considered here? why IRR cannot be calculated? Mary is in contract negotiations with a publishing house for her new novel. She has two options. She may be paid $$100,000$ up front, and receive royalties that are expected to total $$26,000$ at the end of each of

the next five years. Alternatively, she can receive $$200,000$ up front and no royalties. Which of the following investment rules would indicate that she should take the former deal, given a discount rate of $8\%?$

Rule I: The Net Present Value rule

Rule II: The Payback Rule with a payback period of two years

Rule III: The internal rate of return $($IRR$)$ Rule

A$.$ Rule III only

$\text{'}$B$.$ Rule I only

C$.$ Rule II and III

D$.$ Rule I and II